[javachip]

I don’t know what it would mean for I or E series bonds.

Remember, the CDS is protection against the US Gov’t defaulting on a specific bond issue and that is still an unlikely event. If it were to happen, it doesn’t necessarily mean the gov’t would default on other bond issues. An analogy would be an individual who defaults on their car loan, but stays current with their mortgage.

[Abigail Adams]

Thank you! That makes sense.